Design of governmental interventions in the recent years has been increasingly influenced by insights gained from behavioral sciences. We provide an overview of the recent report on such policy interventions designed by the Social and Behavioral Sciences Team (SBST) of the White House and executed in collaboration with other government agencies in 2016 in eight target policy areas.Read More
The paper concludes with a back of the envelope simulation of how much of the racial wage gap in America might be accounted for if human capital policy focused on best practices gleaned from randomized field experiments.Read More
Concurrent declines in self-reported health, mental health, and ability to work, increased reports of pain, and deteriorating measures of liver function all point to increasing midlife distress.Read More
China’s emergence as a great economic power has induced an epochal shift in patterns of world trade. Simultaneously, it has challenged much of the received empirical wisdom about how labor markets adjust to trade shocks.Read More
Amos Tversky Daniel Kahneman
The modern theory of decision making under risk emerged from a logical analysis of games of chance rather than from a psychological analysis of risk and value.Read More
Amos Tversky, Daniel Kahneman
The psychological principles that govern the perception of decision prob- lems and the evaluation of probabilities and outcomes produce predictable shifts of preference when the same problem is framed in different ways.Read More
Eric Toder , Surachai Khitatrakun
New Zealand is introducing a new saving incentive scheme called KiwiSaver on 1 July 2007. The goals of KiwiSaver are to improve the financial position of New Zealanders in retirement, increase aggregate private saving in New Zealand, and reduce New Zealand’s reliance on external debt.Read More
Richard H. Thaler, Shlomo Benartzi
As ﬁrms switch from deﬁned-beneﬁt plans to deﬁned-contribution plans, employees bear more responsibility for making decisions about how much to save.Read More
RICHARD H. THALER
Mental accounting is the set of cognitive operations used by individuals and households to organize, evaluate, and keep track of financial activities.
DILIP SOMAN , AMAR CHEEMA
This research examines the effects of earmarking money on savings by low-income consumers. In particular, the authors test two interventions that are designed to enhance the effects of earmarking: (1) using a visual reminder of the savings goal and (2) dividing the earmarked money into two parts.Read More
Lisa L. Shua, Nina Mazarb, Francesca Ginoc, Dan Arielyd, Max H. Bazermanc
Many written forms required by businesses and governments rely on honest reporting. Proof of honest intent is typically provided throughsignature attheendof, e.g., tax returns orinsurance policy forms.Read More
Robert J. Shiller
Recent literature in empirical finance is surveyed in its relation to underlying behavioral principles, principles which come primarily from psychology, sociology and anthropology.
This essay provides a perspective on the trend towards integrating psychology into economics. Some topics are discussed, and arguments are provided for why movement towards greater psychological realism in economics will improve mainstream economicsRead More
JOHN W. PAYNE, JAMES R. BETTMAN, DAVID A. SCHKADE
A ‘‘building code’’ for preference measurement is needed in a world in which many expressions of preference are constructed when people are asked a valuation question. Construction of preferences.Read More
TED O'DONOGHUE AND MATTHEW RABIN
We examine self-control problems —modeled as time-inconsistent, presentbiased preferences—in a model where a person must do an activity exactly once.
Raymond S. Nickerson
Confirmation bias, as the term is typically used in the psychological literature, connotes the seeking or interpreting of evidence in ways that are partial to existing beliefs, expectations, or a hypothesis in hand.
BRIGITTE C. MADRIAN AND DENNIS F. SHEA
This paper analyzes the impact of automatic enrollment on 401(k) savings behavior. We have two key ndings. First, 401(k) participation is signicantly higher under automatic enrollment. Second, a substantial fraction of 401(k) participants hired under automatic enrollment retain both the default contribution rate and fund allocation even though few employees hired before automatic enrollment picked this particular outcome.
Through a series of ﬁeld experiments involving thousands of primary and secondary school students, we explore the power of behavioral economics to inﬂuence the level of eﬀort exerted by students in a low stakes testing environment.Read More
Richard P. Larrick
Jack B. Soll
Many people consider fuel efficiency when purchasing a car, hoping to reduce gas consumption and carbon emissions.
Jeffrey R. Kling, Sendhil Mullainathan, Eldar Shafir, Lee Vermeulen, Marian Wrobel
Consumers need information to compare alternatives for markets to function efficiently. Recognizing this, public policies often pair competition with easy access to comparative information.Read More